1.100 Million Chinese Travel Over 5-Day Dragon Boat Festival
According to data from China National Railway Group Co., Ltd., the national railways saw 9.972 million passengers and 12.117 million passengers on June 11 and June 12 respectively and is expected to see 8.6 million passengers on June 13. It is reported that the transportation of the Dragon Boat Festival holiday lasts for 5 days. Various data also show that the Yangtze River Delta tourism market is recovering strongly. And also the sales of Rice Dumpling increased by 44% year-on-year during the lunar calendar last year, and the sales of the main low-fat rice dumplings increased by nearly 200%. Consumers’ demand for traditional holiday food remains high, and there is a clear trend towards health.
Comment: The number of 100 million Chinese on the road may have been overstated. Nevertheless, it is understandable that pandemic hit hard Chinese have been longing for some time away. However the tourism market’s uptick will short live unless the truth of CCP virus is discovered and the spread of virus is controlled.
2.The CCP Received 481B Yuan Of FDI From Jan to May
The Reuters, Beijing – China’s Ministry of Commerce announced on Saturday that the disbursement of Foreign Direct Investment (FDI) from January to May this year was 481 billion yuan, a year-on-year increase of 35.4% and a year-on-year increase of 30.3%. According to the Ministry of Commerce’s press release on its website, the disbursement of FDI in the service industry was 381.9 billion yuan, a year-on-year increase of 41.6%. The disbursement of FDI in high-tech industry increased by 34.6%, of which high-tech service industry increased by 37.6%, and high-tech manufacturing industry increased by 25%.
Comments: The CCP faces more sanctions under Biden administration coupled with China-EU’s investment pact’s being blocked, the Foreign Direct Investment (FDI) in China is believed to decrease instead of increasing.
3.Three Gorges Energy Surged 44% On The 1st Day of Trading
After China Three Gorges Renewable Group (China Three Gorges Renewable Group, referred to as: Three Gorges Energy) completed the largest IPO in Mainland China in 2021, its share price soared 44% on the first day of trading, reflecting the strong appetite of investors in the clean energy industry. On Thursday, the stock price of Three Gorges Energy reached the largest increase allowed by the Shanghai Stock Exchange on the first day of listing of new shares. The company is a new energy subsidiary of the state-owned China Three Gorges Corp, whose name is related to the Three Gorges Dam hydropower station.
4.“The King Of Rice Dumpling” Wufangzhai Planned For A-share IPO
According to the Financial Associated Press, June 4th, the official website of the China Securities Regulatory Commission showed that Wufangzhai, rice dumpling maker located in Jiaxing, Zhejiang, had submitted a prospectus for the initial public offering of shares, and the sponsor was Zheshang Securities. Being established in 1921, “Wufangzhai” was the first batch of “Chinese Time-honored” enterprises in the country and was recognized as a well-known trademark by the National Trademark Office in 2004. As per prospectus of Wufangzhai, rice dumpling is the company’s leading product. Last year, the sales volume of Zongzi exceeded 366 million, and the revenue contribution rate exceeded 70%.
Comment: Wufangzhai stated in prospectus that the use of funds raised is for “intelligence” and “informatization”. Can we simply put, the rice dumpling maker would like to rake in money, but in the name of “New technology” or “AI”?
5.Shenzhen Raising Its Target For New Housing By 2035 To Over 2MM Units
China Securities Journal – The Shenzhen Municipal Planning and Natural Resources Bureau released the “Shenzhen Land and Space Master Plan (2020-2035)” (draft). The plan proposed that Shenzhen would launch housing construction on a large scale, adjusting the target of “over 1.7 million new housing units of various types by 2035” established in 2018 to “over 2 million units” for the first time. The proportion of public housing should not be less than 60% of the total number of new housing units, and small-sized and rental housing should be added in the urban central area; a subway network of more than 1,000 kilometers and a 45-minute metropolitan area will be formed.
6.The CCP’s Production & Sales Of New Energy Automobiles Increased
China Automobile Industry Association recently released data showing that during the first five months of this year, the production and sales of national wide new energy automobiles reached 967,000 and 950,000 respectively, a year-on-year increase of 2.2 times. Overseas media continued following Communist China’s new energy vehicles, especially the development of battery electric vehicles.
7.Lisitng Banks Paying Out 490 Billion Yuan Dividends
The listing banks’ dividend payout is in full swing. Many banks have recently implemented the 2020 annual dividend payout plan or announced the plan of the 2020 annual A-share dividend payout. As of June 10, Jiangyin Bank, PingAn Bank, Changshu Bank, Suzhou Bank, Qingdao Bank, Bank of China, Bank of Nanjing, Sunong Bank have implemented the 2020 annual cash dividends payout and distributed a total of 68.242 billion yuan in cash dividends; the highest dividend per share is 0.393 yuan, and the highest cash dividend ratio is 36.99%.
8.Luxury Single House In Shenzhen Auctioned At Half Price
Recently, Alibaba’s auction of a luxury single house in Shenzhen on the Internet has attracted attention. The house sold for over 15 million yuan four years ago was auctioned at the price of 6.3 million yuan, however it failed twice due to no bidder, which reflects the “cooling down” of Shenzhen’s real estate market under the strong regulation. The number of existing apartments sales in May was 3,027, a 37.9% drop from the previous month, and the number of transactions hit a 14-month low; the transaction cycle of existing apartments was 313 days, 24 days longer than that of the previous month.
By【G Translators – Financial Team】